Colorado becomes the first US state to accept bitcoin payments for taxes

The announcement was made by Governor Jared Polis during Denver Startup Week, reflecting his administration’s commitment to fostering innovation and embracing digital currency solutions. Starting from September 1, 2022, the Colorado Department of Revenue began accepting bitcoin payments for a variety of state taxes, including individual income tax, business income tax, sales and use tax, withholding tax, severance tax, and excise fuel tax.
 

The process was facilitated through the PayPal Cryptocurrency Hub, allowing taxpayers to pay in Bitcoin. This integration with PayPal ensured a smooth transaction process while also imposing certain service fees and restrictions, such as the requirement that the entire value of the invoice be available in bitcoin within the payer’s PayPal Cryptocurrencies Hub.